Drivers for farmland value revisited: adapting the returns discount model (RDM) to the sustainable paradigm
In recent studies many researchers have identified non-agricultural attributes of land that significantly contribute to its value. They claim that the increasing proportion of the value of land may now be explained by environmental amenities in rural areas. On the other hand, mainstream economics sa...
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Online Access: | http://dx.doi.org/10.1080/1331677X.2019.1642778 |
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doaj-943105d50106417f81527e878abded752020-11-25T02:08:26ZengTaylor & Francis GroupEkonomska Istraživanja1331-677X1848-96642019-01-013212080209810.1080/1331677X.2019.16427781642778Drivers for farmland value revisited: adapting the returns discount model (RDM) to the sustainable paradigmBazyli Czyżewski0Piotr Kułyk1Łukasz Kryszak2Poznan University of Economics and BusinessUniversity of Zielona GóraPoznan University of Economics and BusinessIn recent studies many researchers have identified non-agricultural attributes of land that significantly contribute to its value. They claim that the increasing proportion of the value of land may now be explained by environmental amenities in rural areas. On the other hand, mainstream economics says that farmland values are determined by the discounted stream of returns (present value model). The main aim of this work was to adapt neoclassical concept of the Returns Discount Model (RDM) of Saphiro–Gordon type to the case of a land market in Poland. We introduced a modified RDM (i.e. the multilevel variance component model) to answer whether it remains applicable to the valuation of farmland in the context of sustainable agriculture. It was found that in spite of the growing role of non-productive functions of agriculture the improved RDM continues to perform well as a tool to assess changes in land prices.http://dx.doi.org/10.1080/1331677X.2019.1642778farmland pricerdm modelpresent value modelsustainable agricultureland rent |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Bazyli Czyżewski Piotr Kułyk Łukasz Kryszak |
spellingShingle |
Bazyli Czyżewski Piotr Kułyk Łukasz Kryszak Drivers for farmland value revisited: adapting the returns discount model (RDM) to the sustainable paradigm Ekonomska Istraživanja farmland price rdm model present value model sustainable agriculture land rent |
author_facet |
Bazyli Czyżewski Piotr Kułyk Łukasz Kryszak |
author_sort |
Bazyli Czyżewski |
title |
Drivers for farmland value revisited: adapting the returns discount model (RDM) to the sustainable paradigm |
title_short |
Drivers for farmland value revisited: adapting the returns discount model (RDM) to the sustainable paradigm |
title_full |
Drivers for farmland value revisited: adapting the returns discount model (RDM) to the sustainable paradigm |
title_fullStr |
Drivers for farmland value revisited: adapting the returns discount model (RDM) to the sustainable paradigm |
title_full_unstemmed |
Drivers for farmland value revisited: adapting the returns discount model (RDM) to the sustainable paradigm |
title_sort |
drivers for farmland value revisited: adapting the returns discount model (rdm) to the sustainable paradigm |
publisher |
Taylor & Francis Group |
series |
Ekonomska Istraživanja |
issn |
1331-677X 1848-9664 |
publishDate |
2019-01-01 |
description |
In recent studies many researchers have identified non-agricultural attributes of land that significantly contribute to its value. They claim that the increasing proportion of the value of land may now be explained by environmental amenities in rural areas. On the other hand, mainstream economics says that farmland values are determined by the discounted stream of returns (present value model). The main aim of this work was to adapt neoclassical concept of the Returns Discount Model (RDM) of Saphiro–Gordon type to the case of a land market in Poland. We introduced a modified RDM (i.e. the multilevel variance component model) to answer whether it remains applicable to the valuation of farmland in the context of sustainable agriculture. It was found that in spite of the growing role of non-productive functions of agriculture the improved RDM continues to perform well as a tool to assess changes in land prices. |
topic |
farmland price rdm model present value model sustainable agriculture land rent |
url |
http://dx.doi.org/10.1080/1331677X.2019.1642778 |
work_keys_str_mv |
AT bazyliczyzewski driversforfarmlandvaluerevisitedadaptingthereturnsdiscountmodelrdmtothesustainableparadigm AT piotrkułyk driversforfarmlandvaluerevisitedadaptingthereturnsdiscountmodelrdmtothesustainableparadigm AT łukaszkryszak driversforfarmlandvaluerevisitedadaptingthereturnsdiscountmodelrdmtothesustainableparadigm |
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1724927443078217728 |